U.S. Now Net Exporter of Oil

[Mike]

This is good news, almost anyway you look at it. Personally, I'd rather we didn't import, or export, oil and gas. We should save it for the future.

For the first time in 75 years, the United States exported more oil than it imported, carrying out a pledge from President Trump that America can achieve "energy independence."

While the U.S. has been a net oil importer since 1949, over the final week of November, U.S. net imports of crude oil and petroleum products fell to minus 211,000 barrels per day (bpd) — which means America exported more than it imported, according to data from U.S. Energy Information and Administration.

Oil production has been booming in the U.S. as the shale revolution swept the nation. America is now the world’s largest producer of petroleum, passing Russia and Saudi Arabia. As the U.S. oil boom spread, the power of OPEC was reduced and gas prices in the U.S. have dropped from the $4+ highs under former president Barack Obama.

SOURCE

[Honda]

I think that is great news. I remember the days when the Saudi's would twirl us in the wind and turn the juice off and on on a whim and rake in the billions. Now I did see an article on a news source that hates the President taking the position that low oil prices are a bad thing. Don't really understand it because no President really has any real control over gas prices.

[Dave Grubb]

I thought that happened a few years ago but when I checked I find that was for refined product.

One thing that will help increase exports is improved port/loading facilities---especially for LNG.

I no longer have a fear of exporting---we have learned we have far more reserve than we ever imagined.

[TxMusky]

Great news actually. I may have an answer for you Honda.

Now I did see an article on a news source that hates the President taking the position that low oil prices are a bad thing.

When the price of oil falls too low, exploration and drilling stops. In laymans terms, it means the oil bust comes around and employers lay off workers and jobs dry up. It also hurts the areas around the "Boom" that have been hiring and servicing many workers to supply the demand for restaurants, motels, gas stations, etc, to support the oilfield. This does not include other support, like parts, tool rentals and sales, pipe, vehicles etc.


When oil was around 25-30 a barrel drillers quit drilling as it was too expensive at the current going rates for all of the services required. The rate they had to pay for the rig, when prices are up they rent the rig for a "per day" rate and the rig owners like the rig to be rented for a "per foot" charge. Anyway, workers and services always get top dollar or they will go to the company that is paying the most. When prices go down, the workers are laid off and the ones that get to stay, receive big pay cuts. The same goes for the workers in the hotels, restaurants, etc.


That is why a steady price is always a better deal for all involved.

[mgrist]

Great news actually. I may have an answer for you Honda.
When the price of oil falls too low, exploration and drilling stops. In laymans terms, it means the oil bust comes around and employers lay off workers and jobs dry up. It also hurts the areas around the "Boom" that have been hiring and servicing many workers to supply the demand for restaurants, motels, gas stations, etc, to support the oilfield. This does not include other support, like parts, tool rentals and sales, pipe, vehicles etc.


When oil was around 25-30 a barrel drillers quit drilling as it was too expensive at the current going rates for all of the services required. The rate they had to pay for the rig, when prices are up they rent the rig for a "per day" rate and the rig owners like the rig to be rented for a "per foot" charge. Anyway, workers and services always get top dollar or they will go to the company that is paying the most. When prices go down, the workers are laid off and the ones that get to stay, receive big pay cuts. The same goes for the workers in the hotels, restaurants, etc.


That is why a steady price is always a better deal for all involved.

Thanks James! I had to read it twice to be sure but you didn't mention Trump one time!